Manama, Bahrain: Bank ABC (Arab Banking Corporation B.S.C.) - Bahrain Bourse Trading Code “ABC” - announces its financial results for the period ended 30 September 2024, including the third quarter of 2024.

Bank ABC continued its strong performance reporting a year-to-date net profit of US$215 million, a 17% growth over the corresponding period last year. Total Operating income crossed $1 billion for the first time at the 9 months stage, a 6% increase year on year (YOY).  This was driven by core business growth and higher average asset volumes, after absorbing the impact of EGP depreciation, being underpinned by well controlled operating expenses and cost of credit. The Group’s balance sheet strength was also maintained, with capital and liquidity ratios at robust levels, while total assets reached US$46 billion. 

During the third quarter alone, Bank ABC received several prestigious industry awards for excellence across business lines as well its accelerated growth and digital transformation, including the second time win of the ‘Transaction Banking’ and ‘Innovation in Digital Banking’ awards for the Middle East region by The Banker – Financial Times. In addition, the Bank’s innovation and digitisation centre, ABC Labs was recognised for the third time as one of the ‘World’s Best Financial Innovation Labs’. Moreover, ila, Bank ABC’s   digital mobile-only bank, was named the ‘Best Consumer Digital Bank in Bahrain’ among seven leading titles by Global Finance.

Bank ABC's Group Chairman, Mr. Saddek Omar El Kaber remarked, “We are pleased with the Group’s excellent year-to-date performance, which leveraged strong contributions and market opportunities from across our diversified international franchise. The Group’s capabilities, brand and reputation continue to be strengthened by the accelerated implementation of our strategy, which has also built our growth momentum during the year, as we further anchor our position as “MENA’s International Bank of the Future.” 

Detailed summary of the Financial Results is explained below:

Performance highlights for the third quarter (3 months) of 2024 

• Consolidated net profit attributable to the shareholders of the parent, was US$65 million, 5% higher compared to US$62 million reported for the same period last year. Underlying *net profit attributable to the shareholders of the parent before any impact of FX, was US$76 million, which is 23% higher as compared to the same period last year.
• Earnings per share for the three-month period was US$0.018, compared to US$0.017 in the same period last year.
• Total comprehensive income attributable to the shareholders of the parent was US$92 million, 42% increase compared to US$65 million for the same period last year, benefiting primarily from the strengthening of Brazilian Real against the US$.
• Headline total operating income for Q3 2024 was US$328 million, 1% lower than US$332 million reported for the same period last year. Adjusting for FX translation effects, underlying total operating income was US$366 million, 10% higher compared to the same period last year.

Performance highlights for the year to date (9 months ended 30 September 2024)

• Consolidated net profit attributable to the shareholders of the parent was US$215 million, a growth of 17% compared to US$183 million reported last year, driven by a combination of core business growth across many markets, higher average asset volumes and disciplined management of operating expenses and cost of credit.
• Earnings per share for the period was US$0.064, compared to US$0.053 for the same period last year.
• Total comprehensive income attributable to the shareholders of the parent during the nine month period was affected by the FX translation impacts of EGP (primarily during Q1) and BRL. The net impact of these resulted in total comprehensive income for the period at US$36 million, 79% lower compared to US$174 million reported during the same period last year (when the currencies remained broadly stable). 
• Total operating income for the period was US$1,002 million, 6% higher compared to US$943 million reported last year and surpassing the $1 billion threshold for the first time at this stage of the year. Underlying total operating income before any impact of FX translation was US$1,040 million, 10% higher compared to the same period last year, reflecting broad based growth across almost all the core markets.

Balance Sheet

• Equity attributable to the shareholders of the parent and perpetual instrument holders as at  30th September 2024 was US$4,250 million, compared to US$4,300 million reported at the 2023 year-end, 1% lower after absorbing dividend payments and the impact of FX movements on EGP and BRL. 
• Total assets stood at US$46.0 billion at 30th September 2024 , as compared to US$43.9 billion reported at the 2023 year-end, an increase of 5% driven by core business and growth, balance sheet optimization and portfolio management actions. 
• Healthy Capital and Liquidity ratios well above regulatory minima: Tier 1 Capital ratio at 14.2%, of which CET1 at 12.5%. LCR and NSFR at 183% and 119% respectively.

Bank ABC is a leading player in the region’s banking industry, with presence in 15 countries across five​ continents. The Bank provides innovative global wholesale banking solutions in both conventional and Islamic finance, across Transaction Banking, Project and Structured Finance, Capital Markets, Financial Markets, Real Estate Finance to corporates and financial institutions. It also provides Retail Banking services through its network of branches in Jordan, Egypt, Tunisia, Algeria, and through ila Bank, its digital mobile-only bank, in Bahrain and Jordan.

The full set of financial statements and the press release are available on the Bahrain Bourse and Bank ABC websites. Further details are provided in the Investor Highlights Presentation published on Bank ABC’s website: www.bank-abc.com.

*’Underlying’ basis referred above calculated after adjusting for FX depreciation and other one-off exceptional items.  Further details are explained in the Investor presentation available on Bank ABC website

Mr. Saddek Omar El Kaber
Bank ABC's Group Chairman